Indian Petronet recieved a
letter of intent from the Sri Lankan government to set up LNG terminal near
Colombo in Sri Lanka, the company announced on Wednesday.
"The two countries in
their efforts to strengthen relations have been in discussions on this issue
since last more than one year [sic]. The Sri Lankan Government issued a Letter
of Intent to the Govt. of India during the visit of External Affairs Minister
to Colombo on Sept 1," the company explained.
Petronet LNG Limited,
India's largest LNG importer, will soon form a joint venture with Japanese and
Sri Lankan companies.
A joint venture of Petronet
LNG Limited along with Japanese and Sri Lankan companies will develop an LNG
Terminal in Sri Lanka to provide regassified natural gas to various power
plants, domestic and transport sectors in Sri Lanka.
The capacity of the LNG
Terminal will be decided upon the gas demand in Sri Lanka and is expected to be
developed in 2 years after completion of initial formalities.
The LNG terminal would be
set up on the western coast of Sri Lanka in close vicinity of Colombo where most
of the power projects operating mainly on costly liquid fuel are located.
As of now, 82 percent of
the primary energy consumption is met through petroleum products and bio-mass
in the country.
"It's a giant step
towards energy security of Sri Lanka and underscores the 'neighbourhood first'
policy of Prime Minister Modi. It shall pave the way for further cementing
primeval bonds," the company noted.
(Anadolu Agency)